Business Strategies and Multinational Companies
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Questions and Answers

What is one primary benefit companies gain from sponsorship?

  • Increased product pricing
  • Global brand visibility (correct)
  • Reduced production costs
  • Direct sales through media

    • In which market segment are special offers particularly popular?

  • Fast-moving consumer goods (correct)
  • Electronics
  • Luxury goods
  • Automobiles

    • How do companies typically use sponsorship to their advantage?

  • By linking with sporting events (correct)
  • By lowering their production quality
  • By improving employee satisfaction
  • By increasing retail prices

    • Which option is NOT a characteristic of price discounts and special offers?

    <p>Permanent price reductions</p> Signup and view all the answers

    What is a common method companies use to enhance their brand exposure?

    <p>Sponsoring sporting events</p> Signup and view all the answers

    What is one potential drawback of multinational companies?

    <p>Exploitation of less developed countries</p> Signup and view all the answers

    Which of the following describes crowdfunding?

    <p>A method for a large number of individuals to invest using an online platform</p> Signup and view all the answers

    What is one reason many companies develop into multinationals?

    <p>Exploiting economies of scale</p> Signup and view all the answers

    What does retained profit refer to?

    <p>Profit held by a business for future use</p> Signup and view all the answers

    Which of the following is a benefit of becoming a multinational business?

    <p>Higher profile and greater visibility</p> Signup and view all the answers

    What is the classification of assets that are expected to be converted into cash within a year?

    <p>Current assets</p> Signup and view all the answers

    How can multinational companies benefit a host country's economy?

    <p>Increased tax revenue</p> Signup and view all the answers

    Which of the following represents liabilities in a business context?

    <p>Details providing a source of funds for the business</p> Signup and view all the answers

    What advantage do multinational companies have regarding trade barriers?

    <p>They can circumvent trade barriers</p> Signup and view all the answers

    What is one potential outcome of multinational companies operating in a country?

    <p>Increase in income and employment</p> Signup and view all the answers

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